CYTEK(US:CTKB)2023-02-28 16:00Financial Position - The company's inventory balance was $48.2 million as of December 31, 2022[263]. - Total current liabilities increased to $49.0 million as of December 31, 2022, from $33.2 million in 2021[292]. - Cash and cash equivalents totaled $296.6 million as of December 31, 2022, primarily consisting of money market funds and bank deposits[286]. - Total inventories as of December 31, 2022, amounted to $48.154 million, up from $32.171 million in 2021, indicating a 49.6% increase[345]. - The Company’s property and equipment, net, increased to $13.682 million as of December 31, 2022, from $5.851 million in 2021, a 133.5% increase[350]. - As of December 31, 2022, the Company had total stockholders' equity of $425.546 million, up from $405.385 million in 2021[697]. - The total liabilities, redeemable convertible preferred stock, and stockholders' equity amounted to $519.476 million as of December 31, 2022[697]. Revenue and Income - Total revenue for 2022 reached $164.036 million, a 28.3% increase from $127.950 million in 2021[323]. - Product revenue was $148.600 million in 2022, up 24.4% from $119.519 million in 2021[323]. - Service revenue increased to $15.436 million in 2022, a 83.1% rise from $8.431 million in 2021[323]. - The net income attributable to common stockholders for 2022 was $2.576 million, compared to a net loss in 2021[323]. - Net income for 2022 was $2,484,000, a decrease of 17.9% from $3,027,000 in 2021[325]. - The company reported a net comprehensive income of $890,000 for 2022, down from $3.859 million in 2021[323]. Expenses - General and administrative expenses increased to $34.7 million for the year ended December 31, 2022, up from $20.8 million in 2021, primarily due to increased personnel-related costs[271]. - Operating expenses totaled $102.778 million in 2022, a 47.0% increase from $69.987 million in 2021[323]. - The Company recorded $2.2 million in interest expense for the year ended December 31, 2022, compared to $1.7 million in 2021[353]. - Cash paid for taxes increased to $10,390,000 from $2,863,000 in the previous year[325]. - Stock-based compensation expenses totaled $16,595 million in 2022, significantly higher than $6,586 million in 2021, with costs in research and development rising to $5,035 million[407]. Cash Flow - Total cash used in operating activities was $12,231,000, compared to cash provided of $4,630,000 in the previous year[325]. - Cash flows from investing activities totaled $55,909,000, significantly higher than $20,993,000 in 2021, primarily due to purchases of marketable securities[325]. - The company reported a net cash increase of $299,500,000 at the end of the period, down from $364,618,000 at the beginning[325]. Taxation - The company recorded a benefit from income tax of $1.2 million for the year ended December 31, 2022, compared to a provision of $2.9 million in 2021[271]. - The effective tax rate for 2022 was (97.1)%, compared to 48.9% in 2021 and (34.5)% in 2020[389]. - Deferred tax assets increased to $25,755,000 in 2022 from $10,434,000 in 2021, with net deferred tax assets at $24,507,000[390]. - The Company maintained a valuation allowance of $(1,248,000) against deferred tax assets as of December 31, 2022[390]. Acquisitions and Investments - The Company completed the acquisition of the reagents business of Tonbo Biotechnologies Corporation for an aggregate cash consideration of $17 million, which includes a portfolio of life science research reagents[372]. - The acquisition of Tonbo resulted in $9.7 million of goodwill, primarily due to immediate access to Tonbo's products and business infrastructure[373]. - The identifiable net assets acquired from Tonbo included customer relationships valued at $2.2 million, tradename assets at $700,000, and reagent licenses at $1.8 million[374]. - The Company invested $1.6 million in Tianjin Deep Analysis Intelligent Technology Development Co., Ltd, acquiring approximately 3.3% ownership[449]. - In January 2023, the Company purchased all shares of Cytek Japan from TOMY, making it a wholly-owned subsidiary[449]. - The Company acquired certain assets from Luminex Corporation for approximately $46.5 million in cash, closing the acquisition on February 28, 2023[449]. Stock and Equity - The Company issued 17,752,068 shares of Series D redeemable convertible preferred stock for net proceeds of $119.7 million in October 2020[378]. - As of December 31, 2022, the Company had authorized 1,000,000,000 shares of common stock at a par value of $0.001[379]. - The 2021 Equity Incentive Plan reserves 18,000,000 shares for issuance, with an automatic annual increase of 4% of outstanding shares[380]. - The total number of stock options outstanding decreased to 7,578,635 as of December 31, 2022, from 8,805,850 in 2021, with an aggregate intrinsic value of $37,200[405]. - As of December 31, 2022, the Company had $28.1 million of unrecognized stock-based compensation expense related to unvested stock options, estimated to be recognized over 2.23 years[384]. - The Company had $14.5 million of unrecognized stock-based compensation expense related to unvested RSU awards, estimated to be recognized over 3.22 years[385]. Legal and Compliance - The Company has a legal settlement liability of $17.8 million as of December 31, 2022, up from $15.2 million in 2021[353]. - The Company is not currently under examination for federal, state, and foreign income tax purposes, and its tax returns are subject to examination unless the statutes of limitations close[358]. - The Company plans to enhance its internal control over financial reporting to address identified material weaknesses[428]. Accounting Policies - The Company has adopted recent accounting pronouncements that may impact its financial statements[691]. - The adoption of Topic 842 resulted in the recording of right-of-use (ROU) assets and lease liabilities related to operating leases of approximately $14.6 million and $15.2 million, respectively, on January 1, 2022[360]. - The Company uses the acquisition method of accounting under ASC 805, with acquired companies' operating results included in consolidated financial statements from the acquisition date[359]. - The Company adopted ASU 2016-13 on December 31, 2022, which requires estimating all expected credit losses for financial assets measured at amortized cost, with no material impact on consolidated financial statements[360].